01865cas a2200265 a 4500 AALejournalIMF004630 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451865653 1018-5941 BD-DhAAL BD-DhAAL Kumar, Manmohan. Policy Credibility and Sovereign Credit : The Case of New EU Member States / Manmohan Kumar, Jiri Jonaa, David Hauner. Washington, D.C. : International Monetary Fund, 2007. 1 online resource (29 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students References to policy credibility, particularly with regard to fiscal policy, are ubiquitous in both economic literature and financial markets, even though it is not directly observable. The case of the EU new member states (NMS)-emerging markets joining a supranational entity that is generally considered to have higher policy credibility-provides a unique experiment to assess the effects of credibility on sovereign credit. This paper examines the impact of EU accession on three key variables that can reflect in varying degrees policy credibility: sovereign ratings, foreign currency spreads, and local currency yields. The results suggest that the NMS appear to have enjoyed higher credibility compared to their peers. Mode of access: Internet Hauner, David. Jonaa, Jiri. IMF Working Papers; Working Paper ; No. 2007/001 Full text available on IMF http://elibrary.imf.org/view/journals/001/2007/001/001.2007.issue-001-en.xml IMF e-Library